Turkiye Vakiflar Bankasi Turk Anonim Ortakligi · BIST:VAKBN
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi — FY2016 Earnings Presentation
33 slides from Turkiye Vakiflar Bankasi Turk Anonim Ortakligi's earnings presentation, Feb 20, 2017
Slide 1: Earnings Presentation BRSA Bank-Only YE 2016
Earnings Presentation VakıfBank IR App. Available at BRSA Bank-Only YE 2016 February 20, 2017
Slide 2: 4Q16 Macro Highlights
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 4Q16 Macro Highlights Current Account Deficit (12m, bn USD) Monetary Policy 80 11.50 11.00 10.50 60 10.00 9.50 32.6 9.00 40 8.50 8.00 20 7.50 7.00 0 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 CBRT Avr
Slide 3: YE 2016 VakıfBank Highlights
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 YE 2016 VakıfBank Highlights Quarterly bank-only net income is TL 782.1 million, which is up Total deposits are up by 3.2% QoQ and 12.7% YoY. by 19.1% YoY and down by 4% QoQ. Demand and retail deposits are up by 20.5% and 20.1% YoY 2016 full
Slide 4: YE 2016 Earnings and Ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 YE 2016 Earnings and Ratios Net Income (TL million) ROAE (%) 40% 17.8 16.1 15.6 16.5 13.3 13.7 11.2 12.1 12.2 11.6 2,703.0 (4.3%) 817.4 782.1 1,930.1 4Q15 1Q16 2Q16 3Q16 4Q16 656.6 586.9 VB Sector 516.7 Outperformance 452.5 of sector 434.6 p
Slide 5: YE 2016 P&L Details
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 YE 2016 P&L Details 954 9,477 (3,835) 484 981 92 6,967 703 (2,247) YE 2016 (692) 2,703 Net Interest Net Fees and Dividend Net Trading Other Income Total Operating Provisions Taxes Net Income Income Commissions Income Income Revenue Expenses
Slide 6: Revenue breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Revenue breakdown Total Revenues (TL million) Revenue Breakdown (%) 24.4% Dividend Other Other Dividend 13.8 0.8 10.1 1.0 9,477 Trading Trading 7,618 1.3 5.1 Net F&C Net F&C 2015 10.4 2016 12.1 2,546 2,644 NII NII 3.8% 72.0 73.5 YE15 3Q16 4Q
Slide 7: NIM, Spreads and Costs
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 NIM, Spreads and Costs TL Core Spreads (%) FX Core Spreads (%) 13.11 13.34 -12 bps 13.22 12.53 +79 bps 5.96 4.94 5.17 4.36 FX Loan Yields TL Loan Yields FX Deposit Costs 8.38 8.28 TL Deposit Costs 1.44 1.72 1.73 +22 bps 1.95 7.73 -12 bps 7.6
Slide 8: Fee & Commission Income
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Fee & Commission Income Net Fee & Commission Income (TL million) Breakdown of Net Fee & Commission Income (%) Insurance 6.5% 2016 Inquiry&Expertise 6 6 980.9 Cash Loans 921.1 Other 6 24 Payment systems 247.0 278.2 Non-Cash Loans 12.6% 34 24
Slide 9: Disciplined cost management
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Disciplined cost management Operating Expenses (TL million) Breakdown of Opex (TL million) Jaws Ratio (%, YoY) Quarterly 6.2% 3,835.1 Growth 2016 2015 3,610.2 Jaws Ratio: Fee 82.1 -7.2% 3,835.1 227.8 (64%) Rebates (19.8%) 24.4 3,610.2 18.2 2
Slide 10: Asset Breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Asset Breakdown Total Assets (TL billion) Breakdown of Assets (%) 16.2% Other 16.2 212.5 Quarterly Growth Interbank 197.6 Securities Loans 7.6% 1.8 Selective 182.9 2016 lending, TL 4Q15 +1% -1% appreciation Securities related 13.0 Loans cont
Slide 11: Selective and profitability focused loan growth in target segments
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Selective and profitability focused loan growth in target segments Total Loans (TL billion) FC Loans (USD billion) 19.2% 11.5% 146.6 Sector total loan 13.4 13.5 12.9 136.9 growth 7.1% vs 12.1 0.9% 16.8% 123.0 YoY 47.6 40.2 18.4% 35.4 YE15 1H
Slide 12: Well diversified & stable loan breakdown
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Well diversified & stable loan breakdown Breakdown of Loans (TL billion) Loans (TL billion) 123.0 129.3 136.9 146.6 Other 1 8.9 9.1 9.5 9.5 VB VB VB Sector Sector 4Q16 QoQ YoY QoQ YoY Cash& Non-Cash SME 2 35.7 37.0 187.1 9% 20% 9% 18% 33.0 3
Slide 13: GPC driven retail loan growth
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 GPC driven retail loan growth General Purpose Consumer (TL billion) Residential Mortgages (TL billion) 11.6% vs Sector GPC 12.3% growth of Strong presence in 7% YoY key retail 17.0 16.8 17.0 segments thanks 16.1 16.0 16.2 15.2 6.3% 15.1 to 1
Slide 14: Selective business lending growth mostly towards high quality corporate sector
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Selective business lending growth mostly towards high quality corporate sector Commercial&Corporate (TL billion) Project Finance Loans (USD billion) Sector 30% commercial & 10.5% Corporate & corporate vs growth of 8.1 8.2 Commercial 26% YoY
Slide 15: Asset Quality
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Asset Quality NPL (TL million)* Reported1 and Comparable NPL Ratios (%) 1,026 404 5.21 5.19 6,413 4.89 5.06 5,791 4.19 4.06 4.06 3.79 3.70 3.72 3.88 3.30 3.32 3.24 3.41 3.10 Sector W/O Sector; W/O NPL Legacy NPL** sales & write-offs NPL 9M16
Slide 16: Provisions
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Provisions Specific Provisions (TL million) General Provision (TL million) 1,936 355 214 1,030 454 666 100 ~TL 1.2 billion 370 57 23 general YE15 2Q16 3Q16 4Q16 YE16 YE15 2Q16 3Q16 4Q16 YE16 provisions held Specific Cost of Risk (%) Coverage
Slide 17: Customer deposits driven well diversified funding structure
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Customer deposits driven well diversified funding structure Breakdown of Liabilities (%) Breakdown of Liabilities (TL billion) Sub-Debt Sub-Debt Other Bonds Other 2.4 7.0 A new DPR borrowing 2.3 Bonds 5.8 6.2 182.9 212.5 obtained, amounting
Slide 18: Non-granular deposit base via faster growth on demand & retail deposits
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Non-granular deposit base via faster growth on demand & retail deposits Total Deposits (TL billion) Breakdown of Deposits (%) 12.7% Share of 114.1 120.0 123.8 Demand 109.9 32.6 3.2% 37.7 30 29 27 30 deposits in 33.3 33.5 FC total deposit FC
Slide 19: Strong solvency ratios maintained
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Strong solvency ratios maintained Capital Adequacy Ratio (%) Buffers (%) 2016 2017 2018 2019 Capital Conservation Buffer 0.625 1.25 1.875 2.5 Core Tier I 11.26% 11.49% 11.81% 11.83% 11.47% Counter Cyclical Buffer* - - - - 14.52 14.08 14.42 1
Slide 20: Appendix
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Appendix Pg. 21 Securities Portfolio Pg. 22 Credit Card Loans Pg. 23 Alternative Distribution Channels Pg. 24 VakıfBank with numbers Pg. 25 Ratings Pg. 26 Diversified funding sources via Non-Deposit Funding Pg. 27 Unconsolidated Key Financia
Slide 21: Effective management of security portfolio
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Effective management of security portfolio Total Securities (TL million) Portfolio Structure 9% 25,337 26,189 27,611 Total TL 5.5 billion TL 22.1 billion equivalent 5.4% 8,181 FC 7,678 8,088 29.6% TL 30.3% 30.9% 862 1,611 885 5.8% 25% 3.5% 3
Slide 22: Consistently growing complementary credit card business
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Consistently growing complementary credit card business Credit Card Loans (TL million) Retail Credit Card Market Share (%) Sector 14.3% credit card 57 bps YoY loan growth increase in vs of 8% YoY 5.33 5.44 retail credit 5,974 4.87 4.95 5.07
Slide 23: Increased focus on alternative distribution channels
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Increased focus on alternative distribution channels Active Mobile Banking Customers (#thousand) Market Share in Mobile Banking & Internet Banking(%) 104.2% 1,110.8 8.25 993.5 6.83 820.9 5.96 11.8% 4.62 543.9 Mobile Internet 2015 1H16 3Q16 2
Slide 24: VakıfBank with numbers
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 VakıfBank with numbers Distribution Channels & Customer (#) YE16 Efficiency (‘000 TRY) YE16 Personnel 15,615 Assets per Employee 13,611 POS Terminals 200,691 Assets per Branch 230,022 Outstanding Credit Cards 3.5 mn Loans per Employee 9,390
Slide 25: Ratings
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Ratings Fitch Ratings Moody’s Standard & Poor’s (February 2, 2017) (October 11, 2016) (February 1, 2017) Long term FC IDR BB+ Ba2 BB / B FC Counterparty Credit Ratings VakıfBank Outlook Stable Stable Negative BCA (Baseline Credit Assessment)
Slide 26: Diversified funding sources via Non-Deposit Funding
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Diversified funding sources via Non-Deposit Funding US$ 1,755 milllion outstanding September 2016 US$ 835 million equivalent 1 year syndicated loan, all in cost as Libor + 1.10% ve Euribor +1.00.% with participation of 30 banks from 15 count
Slide 27: Unconsolidated Key Financial Ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Unconsolidated Key Financial Ratios 2015 1Q16 1H16 9M16 2016 Profitability ROAE (Cumulative) 12.2% 12.1% 12.7% 14.4% 15.0% ROAA (Cumulative) 1.1% 1.1% 1.2% 1.3% 1.4% Cost / Income 47.4% 44.8% 44.5% 42.0% 40.5% Cost / Assets 2.0% 2.0% 2.0% 1.
Slide 28: Consolidated Key Financial Ratios
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Consolidated Key Financial Ratios 2015 1Q16 1H16 9M16 2016 Profitability ROAE (Cumulative) 11.7% 11.9% 12.5% 14.6% 15.3% ROAA (Cumulative) 1.1% 1.1% 1.1% 1.3% 1.4% Cost / Income 54.6% 52.0% 50.7% 47.6% 45.8% Cost / Assets 10.2% 2.5% 2.5% 2.4
Slide 29: Unconsolidated Balance Sheet
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Unconsolidated Balance Sheet YE15 3Q16 YE16 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central 21,484,789 7,383,089 21,636,174 7,224,098 24,365,297 6,931,806 13.4% 12.6% (6.1%) (4.0%) Bank Interbank 5,234,266
Slide 30: Consolidated Balance Sheet
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Consolidated Balance Sheet YE15 3Q16 YE16 TL USD (thousand) TL USD TL USD TL USD YoY QoQ YoY QoQ Cash & Balances with Central 21,489,914 7,384,850 21,640,869 7,225,666 24,369,315 6,932,949 13.4% 12.6% (6.1%) (4.1%) Bank Interbank 6,182,718 2
Slide 31: Unconsolidated Income Statement
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Unconsolidated Income Statement (TL-thousand, %) YE15 3Q16 4Q16 YE16 YoY QoQ Net Interest Income 5,486,481 1,919,791 1,948,658 6,966,641 27.0% 1.5% Net Fee & Com. Income 921,084 246,955 278,168 980,883 6.5% 12.6% Dividend Income 62,219 9,000
Slide 32: Consolidated Income Statement
INVESTOR RELATIONS Earnings Presentation_Bank Only YE 2016 Consolidated Income Statement (TL-thousand, %) YE15 3Q16 4Q16 YE16 YoY QoQ Net Interest Income 5,735,268 1,985,610 2,016,601 7,236,233 26.2% 1.6% Net Fee & Com. Income 870,329 251,128 254,299 912,483 4.8% 1.3% Dividend Income 37,169 3 594 61
Slide 33: Investor Relations contact
A member of BIST Sustainability Index Investor Relations Levent Mah. Çayır Çimen Sok. No:7 Kat:6 34330 Beşiktaş-İstanbul / Turkey E-mail: investorrelations@vakifbank.com.tr Tel (90-212) 316 7336 Fax (90-212) 316 7126 www.vakifbank.com.tr Disclaimer Notice: This report has been prepared by VakıfBank,
Turkiye Vakiflar Bankasi Turk Anonim Ortakligi (VakıfBank) — FY2016 Earnings Presentation on 6ix